African Rainbow Capital (ARC), the financial-services firm started by billionaire Patrice Motsepe, has invested in 20% of fixed and mobile data network operator, Rain.
“We are delighted to partner with ARC and look forward to the strategic value they bring to the team”, said Rain chairman, Paul Harris. “In addition they enhance our already significant BEE ownership credentials”.
Former FNB CEO, Michael Jordaan is a director and shareholder of Rain.
“We focus on South African and African businesses that deliver exceptional returns on equity, and it is exciting to invest in a company that is at the start of its growth trajectory”, said Johan van Zyl, ARC co-CEO. “There is great demand in our country for fast, reliable and affordable data coverage and Rain promises to deliver just that.”
Rain CEO, Duncan Simpson-Craib said: “The additional equity capital raised from ARC, over and above the funding already in place, ensures that we have the capital to achieve our aggressive rollout targets over the next three years”.
Rain has to date rolled out over 750 Sites and is on track to meet a target of 2,000 by the end of the year, 5,000 by the end of 2018 and ultimately 10,000 in the coming years.
Rain has recently partnered with Internet Solutions to deliver its fixed wireless broadband service, ‘Rain to the Home’ (RttH) as a Fibre or DSL alternative, coined ‘fibre in the sky’. Internet Solutions will now be offering service providers access to Rain’s LTE-A network.
In the future, Rain plans to launch a full mobile data service.
Bloomberg recently reported that African Rainbow Capital plans to raise more than R3 billion rand ($234 million) in an initial public offering of its investment-holding unit.
According to the report, ARC will fold its non-financial services assets into the company and list the unit’s stock on the Johannesburg Stock Exchange before the end of September,